LONDON—The dollar held near a weekly high on Wednesday after a surge in U.S. yields resulted in sharp gains this week against the euro amid growing bets the Federal Reserve will raise the interest rate. Sterling was flat against the dollar after data showed British inflation rose 5.4 percent in December, to its highest level in 30 years, raising rate hike expectations. Ambrose Crofton, Global Market Strategist at J.P. Morgan Asset Management, said he expects the Bank of England will raise interest rates by 25 basis points in February. “The strength of the labour market will give the Bank of England the confidence to continue to remove support for the economy as it looks to get a better handle on inflation,” he said. The dollar has been boosted by U.S. Treasury yields rising further ahead of next week’s Federal Reserve policy meeting. Ten-year Treasury yields inched up on Wednesday to …